An article last Saturday about an adviser to the money manager J. Ezra Merkin, who invested $2 billion of his clients’ money with Bernard L. Madoff, overstated action taken by the Securities and Exchange Commission in the early 1990s against the adviser. Although the adviser, Victor Teicher, who provided investment advice to Mr. Merkin while Mr. Teicher was in prison for securities fraud, was barred by the S.E.C. from providing investment advice to registered securities advisers, he was not barred from advising unregistered advisers like Mr. Merkin.
The article also may have left the incorrect impression that Mr. Teicher was required to disclose his arrangement with Mr. Merkin in two unsuccessful applications to the S.E.C. in 2007 and 2008 in his effort to re-enter the securities business. The terms of his agreement with the S.E.C. did not require such a disclosure.
- Imprisoned Felon Was Adviser to Madoff Investor (February 14, 2009)